It’s no secret that real estate is a great way to diversify your investment portfolio. Whether you’re in it for the long term or prefer instant returns with rental income, real estate is one solid investment vehicle that almost always delivers.

But, deciding where to park your well-deserved investment capital can be tricky. With so many options available, it is highly important to do your homework regarding the current market trends as well as the future of real estate in the state, city, and neighborhood you’re considering.

As a top-producing boutique brokerage in Miami’s Downtown area, here’s our list of the top seven reasons to invest in Miami real estate and why it’s still one of the most attractive markets in the country right now.

1.     Global City of Choice
2.     Silicon Valley 2.0
3.     Low Taxes and Other Savings
4.     Rents at an All-time High
5.     World-Class Infrastructure
6.     Best of Nature and Wellness
7.     International Lifestyle

— 1. Miami is a Global City of Choice

There’s no denying that Miami has long been popular for its beaches, nightlife, and party scene. However, of late, we’ve also emerged as one of the only cities in the world to host a range of pro sports, including the NFL, NBA, NHL, Polo World Cup, Major League Soccer with Inter Miami headlined by Lionel Messi, ATP Masters 1000 Miami Open, and Formula 1.

Not to forget, the iconic Art Basel art fair is a major annual event, bringing with it the who’s who of the art world, celebrities, socialites, business magnates, and philanthropists.

And then, of course, we have a rich, year-round roster of events that you probably won’t find anywhere else ranging from the Ultra Music Festival to the South Beach Wine & Food Festival, Miami International Film Festival, Miami Fashion Week, and loads more.

Keen to woo its growing list of elite visitors, Miami, as a city, and its real estate, have matured leaps and bounds. We have the world’s attention focused on Miami real estate investment, and here’s how and why:

• Miami led the price growth of the luxury residential market in the U.S. in 2023 with a 6.5% increase in luxury property prices according to Knight Frank’s 2024 Wealth Report. The report tracks down trends and tendencies of high-net-worth individuals from across the globe. 
• Miami is the 3rd Most Fun City in the U.S., according to Wallet Hub. 
• Miami ranked #2 on Resonance’s Cities Americans Want to Live In Now and is also ranked #2 for the highest net international migration. 
• Miami ranked as the 8th Best City to Live in the U.S. according to the Global Liveability Index 2024 by Economist Intelligence.

And of course, Florida, in general, has always been the No. 1 U.S. destination for international buyers, with 20% of foreign buyers choosing the Sunshine State for their purchases in 2023-2024.

— 2. Silicon Valley 2.0

One of the biggest reasons behind Miami's recent real estate boom and domestic and international migration has been its new status as a leading tech and finance hub, and it’s the country's second-most important financial center, behind New York City. 

Starting in 2020, we’ve had the likes of Blackstone, Goldman Sachs, CI Financial, Founders Fund, Microsoft, Citadel, and more invest in Miami by moving their headquarters or opening regional offices in the Magic City, along with these companies billionaire owners. Owing to this, office rents in Miami recently hit an all-time high of almost $200 per square foot this year for office space in Brickell, matching cities like New York and Los Angeles, and bucking general commercial real estate trends. 

Add to this Miami’s strategic positioning as a “Gateway to the Americas,” located perfectly between key Latin American markets such as Brazil, Colombia, and Mexico. Plus, the city has become an incubator for small businesses, given our entrepreneurial spirit and 5.5% corporate tax rate (only for C corps) that allows more money to flow back into businesses (if you have an S corp or LLC, there is no corporate tax in Florida).

— 3. Low Taxes, No State Income Tax, And Other Savings

Considering Florida has no local or state income tax, moving to Miami from high-tax states can mean major savings for people with six-figure-plus salaries. A recent report by New York-based Smart Asset reveals that someone earning a salary of $250,000 in New York saved up to $88,000 a year by moving to Miami in 2023.

Indisputably, such savings show why high-net-worth individuals are moving here, and buying and investing in Florida real estate, boosting demand for luxury housing across the city and the state.

Additionally, the Miami-Dade area has relatively low property tax rates compared to other major cities, which have also been declining over the past few years. There are several ways to make the most of Miami real estate taxes in 2024, as explained in our talk with the top Miami real estate tax expert. After all, even Jeff Bezos, the owner of a multi-billion dollar empire, couldn’t resist Miami’s tax appeal, as he continued to purchase luxurious Miami properties. 

For these reasons, even though recent figures show Miami is expensive, it actually pays off to live in the Magic City, compared to other cities and states.

— 4. Record Prices &  Rents Stabilized after an All-Time High

Given this recent business migration and exodus from high-tax/high-cost states, condo prices have steadily increased over the last several years, with prices for condos priced $1 million and higher reaching record highs in the second quarter of 2024. This is all after luxury condos in Miami have gone up by about 35% in the last four years alone, increasing from $699/square foot in Q4 2018 to $947 by year-end 2023, as per our in-house, full-length luxury condo market report.

Plus, property owners in Miami have seen a 10.1% increase in primary residence rent between December 2022 and December 2023, the highest in the country. However, in 2024, rents have started to stabilize while maintaining high values, which is good news for investors.

Additionally, Miami has always been a tourist hotspot. So, those looking to Airbnb their units can hope to make an average daily rate of $290 (as of May 2023). This daily rate puts Miami in the 10th spot as one of the most expensive U.S. cities for Airbnb short-term rental listings.

— 5. World-Class Infrastructure

Solid infrastructure is a necessity for any city to thrive these days, and Miami is doing its part to elevate its infrastructure across the board. We are home to America’s second-busiest airport for international passengers, the Miami International Airport, and have the maximum number of flights to Latin America and the Caribbean.

In terms of maritime connectivity, PortMiami is the second leading cruise port in the U.S. and is also an important global gateway for cargo.

In addition to an extensive network of local rail transportation, including the Metrorail and Metromover, we also have a blossoming rail system in the Brightline, which provides high-speed inter-city connectivity to Fort Lauderdale, Palm Beach, and Orlando.

Regarding healthcare, Miami’s Baptist Hospital is one of the highest-performing hospital systems in the country, while the Miami Children’s Hospital offers top-rated pediatric services, and Miami Beach’s Mount Sinai Medical Center is the only hospital in South Florida to be rated among the top 2% hospitals in the U.S. by Healthgrades.

We also have a wholesome collection of top-rated schools and universities, including the University of Miami which has produced four Nobel Prize recipients, and Florida International University, part of the Florida State University System, which is rising in the rankings each year for best public university, particularly in the fields of international business, medicine and law. In 2024, it is the fourth-ranked top public university in the nation, according to the America’s Best Colleges 2024 rankings published on WSJ.com.

— 6. Best of Nature and Wellness

Ranked by the annual Mindbody Wellness Index as the second Healthiest City in the U.S., the quality of life here is truly unbeatable. The 2024 report reveals that Miami residents are the least stressed and the most hydrated.

With year-round sunshine, world-famous beaches beckoning you outdoors, an abundance of green spaces, and plenty of outdoor activities to take part in, the environment here is absolutely conducive to working on your overall well-being. 

Add to that a good mix of yoga studios, Pilates classes, and meditation workshops, plus a hearty selection of healthy restaurants, and you’ve got every dimension of your physical wellness covered.

— 7. International Lifestyle

As a global city, Miami has much to offer to the full-time resident as well as the occasional traveler. While many will visit to enjoy our legendary nightlife, which has been touted as the best in the country, most will end up staying for the wholesome lifestyle.

No one would be wrong to call Miami one of the best foodie cities in the country. Part of the prestigious Michelin Guide, which ranks only a select few cities, the culinary landscape here caters to every tastebud and pocket — ranging from vegan to gourmet, Italian to Korean, fine dining to sports bar. You’ll find outposts of a variety of world-renowned restaurants such as Mexico-based Zeru, London's Novikov Restaurant and Bar, or New York’s Pastis.

Shopping here isn’t limited to name brands or niche boutiques but rather traverses the entire landscape of international favorites to couture darlings, and even the edgy, eccentric label.

Besides being one of the most influential art cities in the world — we are home to the world-famous art murals of Wynwood — Miami also offers a colorful cultural scene filled with theater shorts, moving ballet performances, and live orchestras.

You’ll also find some of the best hotels and resorts in the world in Miami, perceiving and fulfilling the needs of the business traveler to the leisure seeker.

— Why Investing in Miami Real Estate Is a Solid Option? Final Takeaway

In this dynamic city, where the sun shines all year round, the investment landscape is constantly evolving. Regardless of whether you're a seasoned investor or just dipping your toes into the world of investment, there’s a property for every taste and budget in Miami — giving you the freedom to step away from traditional hotspots and still maximize your ROI.

Besides stunning beachside residences, Miami has a huge repertoire of luxury properties ranging from shimmering skyscrapers in the urban core to modern-chic condos in up-and-coming neighborhoods, luxurious condo hotels, lavish island estates, and stylish boutique residences perched in the lap of lush, tropical greenery. 

And the best part, most of the new construction in Miami is pre-approved for Airbnb, making them a highly lucrative investment opportunity. Not to mention the Miami real estate market predictions for 2024 are extremely positive.

Now that you know the reasons to invest in Miami real estate, you can filter out and find the most recent, most luxurious, branded, or high-glam condo investment opportunities on our Blackbook Properties website. Reach out and we’ll be happy to give you personalized help in finding the best investment opportunity for you.